Euroclear Bank and Smartstream to Create Central Data Utility
Euroclear Bank and SmartStream have signed an agreement to provide the first centralised reference data utility service. Known as the Central Data Utility (CDU), the Euroclear Bank service will source securities data from data vendors as well as from data originators, such as central securities depositories and stock exchanges.
Powered by SmartStream technology, securities data processed in the CDU will first be validated, cleansed of inaccuracies and then enriched before being relayed to clients in the precise format that the client has chosen, on an intra-day basis.
By pooling data management expertise, SmartStream and Euroclear will be delivering client back-office savings twinned with a high level of securities information accuracy. Initially starting with Eurobond data and subsequently expanding to other asset types from a broad geographic scope of markets, the new service is available to market participants in the form of a centralised utility. CDU clients can benefit from a centralised and simplified process to access cleansed data from their chosen data vendors.
“Capital market firms attribute 35-40% of all trade breaks they experience to avoidable mismatches in reference data,” said Yves Poullet, Euroclear’s chief executive officer (CEO). “Through our unique partnership with SmartStream, we aim to drastically reduce the number of mismatches by providing the highest quality of data accuracy, including the use of in-house information and a comprehensive network of other data providers.
“Firms no longer need to bear the enormous costs and risks of scrubbing securities information themselves. Estimates put back-office client savings at €20m per year and more for those high-volume consumers of securities data that choose to receive refined data from the CDU.”